MicroAd, Inc.

Business Details

Under the vision of "Redesigning The Future Life," the company drives marketing transformation through data and technology. The business consists of two services: ① Data Product Service (an in-house developed data platform centered on UNIVERSE) and ② Consulting Service (for media and overseas markets). The company holds and integrates diverse data specialized for various industries and business types, supporting corporate marketing activities broadly, from advertising delivery to customer attribute analysis.

Recent Overview

In H1 of FY2026 (ending September 2026), both net sales and operating profit increased significantly, and the full-year forecast was revised upward

For the H1 of FY2026 (ending September 2026) (October 2025 to March 2026), net sales were ¥9,633 million (up 17.7% year on year), operating profit was ¥777 million (up 79.8% year on year), and profit attributable to owners of parent for the interim period was ¥592 million (a substantial improvement from ¥27 million in the same period of the prior year). The Data Product Service posted net sales of ¥5,462 million (up 12.3% year on year) and gross profit of ¥2,002 million (up 21.6% year on year), while the Consulting Service posted net sales of ¥4,170 million (up 25.6% year on year) and gross profit of ¥1,076 million (up 33.1% year on year). Operational efficiency and cost reduction measures leveraging generative AI contributed to improved profit margins. Goodwill increased by ¥301 million due to the consolidation of PT. Mahakarya Adi Indonesia as a subsidiary. The full-year earnings forecast was revised upward to net sales of ¥17,788 million (up 13.5% year on year) and operating profit of ¥1,024 million (up 67.1% year on year).

Key Products

Growth Drivers

• Continued expansion in the number of active UNIVERSE accounts (contributed by strengthening sales personnel through new graduate hiring and expansion of regional offices)
• Increased revenue opportunities from expanding UNIVERSE data connections to major third-party SNS and video platforms
• Continued improvement in profit margins through operational efficiency and cost reduction measures utilizing generative AI, among other tools
• Expanding inbound marketing demand (increased overseas marketing investment by Japanese companies driven by the rise in visitors to Japan)
• New revenue contribution from the overseas consumer merchandising business (IP tie-ups such as VTubers) operated by IPmixer Inc.
• Strengthening of the overseas business foundation through the consolidation of PT. Mahakarya Adi Indonesia as a subsidiary
• Continued expansion of the internet advertising market (growth of the programmatic display and video advertising markets)

Risks

• Risk of constraints on the use of consumer behavior data due to strengthened privacy protection regulations (e.g., cookie regulations)
• Risk of damage to trust in the digital advertising market due to ad fraud and brand safety issues
• Risk of talent acquisition difficulties and rising personnel costs (a primary driver of SG&A expenses) inherent in the labor-intensive consulting service model
• Increase in interest-bearing debt, including short-term borrowings of ¥2,817 million and long-term borrowings of ¥755 million (including the current portion due within one year), making liquidity management a challenge
• Decline in equity ratio from 38.2% to 36.8%, with total liabilities increasing by ¥1,450 million compared to the end of the prior fiscal year
• Downward pressure on ordinary profit from increased non-operating expenses, including foreign exchange losses of ¥42 million and equity-method investment losses of ¥31 million
• Shrinking consolidated contribution from the digital signage business following the transition of MADS Inc. to an equity-method affiliate
• Impairment risk associated with the goodwill balance of ¥1,301 million (up ¥301 million from the end of the prior fiscal year)